Rise in insurance premiums set to devastate Aussies
Australians struggling with the cost of living are set to be hit with another blow to their wallets as health insurance premiums rise.
Coming into effect on April 1st, private health insurance premiums are set to rise by more than 3 per cent, in the biggest increase in five years.
The federal government has approved an average industry premium rise of 3.03 per cent, which will impact 14 million Australians paying for private health cover.
The 2024 increase is slightly higher than a rise of 2.9 per cent in 2023, and 2.7 per cent in 2022 and 2021.
In 2019, premiums rose by 3.3 per cent, making the 2024 rise the biggest in five years.
Health Minister Mark Butler said the rise was smaller than the increase in wages, the age pension and inflation.
“I wasn’t prepared to just tick and flick the claims of health insurers, as the opposition asked me to do,” Butler said.
“I asked insurers to go back and sharpen their pencils and put forward a more reasonable offer for the 15 million Australians with private health insurance.”
“Private health insurers must ensure their members are getting value for money,” Butler said.
“When costs rise, Australians want to know that higher premiums are contributing to system-wide improvements like higher wages for nurses and other health workers and ensuring that affordable services are available.”
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